Performance Management

• Performance management


  The continuous process of improving performance by setting individual and team goals which are aligned to the strategic goals of the organization, planning performance to achieve the goals, reviewing and assessing progress, and developing the knowledge, skills, and abilities of people
• Performance management cycle


  • Planning
  • Act
  • Track
  • Review
• Planning phase

  1. Agreeing on SMART objectives

  2. A personal development plan

  3. Actions to be taken in the coming months

  4. A review of the employee's job requirements, updating the role profile where necessary
• The "Act" and "Track" stages are the most important, as this is where performance is actually delivered and results achieved
• These regular performance discussions are typically developmental and future-focused, providing team members with an opportunity throughout the year to explore what has gone well and how success can be replicated, any challenges faced and how they may be overcome, and to agree on actions both the individual and manager need to take to develop the individual and further improve their performance
• Basic elements of effective performance management

  • Setting goals
  • Transparent communication and collaboration
  • Employee recognition
  • Employee development
• Types of performance management

  • General appraisal
  • 360-degree appraisal
  • Technological performance appraisal
  • Employee self-assessment
  • Manager performance appraisal
  • Project evaluation review
  • Sales performance appraisal
• Objectives of the performance management system


  • Enables the employee to achieve the work performance of set standards
  • Helps to identify the skills and knowledge required to perform a job efficiently
  • Motivates employees and boosts employee empowerment
  • Provides a communication channel between the team and supervisor
  • Identifies issues leading to low performance and provides suggestions for development interventions
  • Provides data for important decisions such as promotions, strategic planning, succession planning, and performance-based compensation
• Purposes of the performance management system

  • Feedback mechanism
  • Development concern
  • Documentation concern
  • Diagnoses of organizational problems
  • Employment decisions
• There are different types of performance management systems, including general appraisals, 360-degree appraisals, technological performance appraisals, employee self-assessments, manager performance appraisals, project evaluations, and sales performance appraisals.
• Historically, organizations tended to carry out this planning stage once a year. However, with the business environment becoming increasingly agile and fast-moving, many organizations are adapting their processes to set “near-term” objectives every three months.
• The organization’s goals and values should feed into performance planning to ensure that individual performance aligns with the overall strategy of the organization.
• Performance assessment is required for reward purposes.
• Stages in a performance management cycle where performance is actually delivered and results achieved.

  Act and Track
• in this type of performance management, there is continuous communication between the manager and employee regarding the

  performance throughout the year. They communicate about the pre-set goals, the objectives, the performance feedback, and the new goals.

  General Appraisal
• The feedback about the performance and behavior of

  the employee is provided by peers and the manager of the employees.

  360-degree appraisal
• this appraisal is totally based on the technical knowledge of the employee. The technical expertise and capabilities of the employee are throughout and identified by the manager.

  Technological Performance Appraisal
• the employee compares their own performance with the standard performance expected from them. The manager has discussions with employees about their performance achievements or failures.

  Employee Self-Assessment
• this system is designed for the appraisal of the manager. Here the feedback from the team members and client is collected to evaluate the performance of the manager.

  Manager Performance Appraisal
• this is considered the best way to identify the

  performance of an employee at work. After completion of each project, the performance of the employee is evaluated, and based on the review another project is assigned to the employee.

  Project Evaluation Review
• a specific monthly or yearly sale target is assigned to the employee at the beginning of the year. At the end of the financial year, the salesperson is judged on the set target and the sales result of the

  employee. In this system, it is important to set a realistic sales target for the employee.

  Sales Performance Appraisal